Case Law Details
SUMMARY OF CASE LAW
Even if an asset is described as goodwill but it fits in the description of section 32(1)(ii), depreciation is to be granted on the same; the true basis of depreciation allowance is the character of the asset and not it’s description.
RELEVANT PARAGRAPH
5. We find that, as noted by the learned Commissioner in page 7 in the impugned order, the audit report has made following disclosure below the computation of depreciation on goodwill:
“Goodwill of the company comprises of (a) payment for the marketing and trading reputation, trading style and name, marketing and distribution territorial know how, including information of consumption patterns and habits of consumers in the territory, and (b) the difference between the consideration paid for business and value of tangible assets.
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